DawgTalkers.net Forums DawgTalk Palus Politicus Stock Market

keeps lowering, and lowering, and lowering.

FYI, all the gains for 2018 has been wiped out, for those who didn't know.

are we officially in correction territory? i hope so, that way this can hopefully level out.

but if not.....we have a problem. eventually the tariffs and tax cuts was gonna catch up to us.

i only bring this up because the trump supporters wouldn't shut up about the stock market. so now i want to know what they think about the gains for 2018 being wiped out in less than a month.

Dow swings more than 900 points during wild day of trading

https://www.cnn.com/2018/10/29/investing/stock-market-today-techs-ibm-red-hat/index.html

Glee about a big tech merger sent stocks soaring Monday, but then dread about the threat of new tariffs on China sent them plunging. The Dow swung more than 900 points from its highs of the day to its lows and finished with a more than 245-point loss.

Stocks turned lower in the afternoon after Bloomberg reported that the White House is considering more tariffs on Chinese goods by December if the next round of negotiations between President Donald Trump and Chinese leader Xi Jinping do not go well.
"We'll see what happens," said White House Press Secretary Sarah Sanders on Monday about the meeting. "We're not going to get ahead of those conversations."
The S&P 500 fell 0.7% and the Nasdaq dropped 1.6%. The Dow, which had been up more than 350 points earlier Monday morning, is now more than 9% below its all time highs. Both the Dow and S&P 500 gave up their gains for the year as well.
The Dow was dragged lower in particular by Boeing (BA), which has significant exposure to China and also has the highest stock price in the Dow. Shares fell 6.6%. (The Dow is weighted by stock price, not market value like most other indexes.)
IBM's big acquisition of cloud computing software company Red Hat for $34 billion led to a short rally earlier Monday for tech stocks that quickly fizzled.
IBM (IBM) sank more than 4% to a new multi-year low. Other tech stocks struggled too. In addition to IBM, Big Blue rival Microsoft (MSFT) fell about 3%. Shares of Dow components Apple (AAPL), Intel (INTC) and Cisco (CSCO) all finished the day lower, too.
And the damage was even more brutal for members of the so-called FANG club of momentum tech stocks.
Shares of Facebook, which will report its earnings after the closing bell Tuesday, fell 2%. Amazon shares were down 6%, Netflix's stock fell 5% and Google owner Alphabet (GOOGL) dropped 4.5%.
Concerns that Big Blue may be paying too much for Red Hat (RHT), which soared 45%, may have hurt tech and the broader market. The IBM deal was also the main bit of news since there were no significant earnings or economic reports of note Monday.
Monday's roller coaster moves are discouraging, especially after last week's extreme volatility, when stocks fell for a variety of reasons.
Rate hikes are already squeezing these businesses
Rate hikes are already squeezing these businesses
Disappointing earnings and guidance from industrial bellwethers 3M (MMM) and Caterpillar (CAT) played a part, as did worries that tech giants like Netflix (NFLX) and Amazon (AMZN) were starting to look overvalued.
Weak housing market data hurt big bank stocks as well.
To top it all off, investors remain nervous about the trade tension with China, a stronger dollar eating into profits, and rising interest rates from the Federal Reserve.
But earnings take center stage later this week. Apple, Facebook (FB), General Electric (GE), General Motors (GM), Coca-Cola (KO), Starbucks (SBUX), Kraft Heinz (KHC), Chevron (CVX) and Exxon Mobil (XOM) are among the notable firms to report results.
Wall Street will also be watching Friday's jobs report very closely for signs of stronger wage growth and a possible uptick in inflation.

What goes up must come down.

A month is nothing.

Which is why they invented Viagra.

Normally it wouldn’t be. But when one month wipes out the entire year’s worth of gains, that’s gonna make a lot of people wonder what’s going on.

We’re a full year into trumps economy. Lets see what happens.

How far down though, is the question.

Still nothing.

Don't buy yet swish, or if you do just buy a bit. This market still isn't at peak volatility yet.

More importantly , don't sell

Time for a refill.

We are going to have to wait and see

We are only 7 days away from finding out how low the market can go or how fast the comeback will be. All depends on the American People.

Patience.

bull markets only last about 8 to 9 years historically...we are in year 9...expect a 25-40% pull back over the next 1.5 years as that is what a bear market historically lasts...I am not a professional....but looking historically, I would lock in some profits and set things out for a year or two.

j/c

Here's where the concern is. Usually you have a way to offset a bad market. You save these moves for such an event. The two ways best known are either a tax cut or by cutting the interest rate.

The problem now is that we really don't have a method of stimulating the economy if a major downturn happens. Tax cuts were made under a strong economy. The interest rate hasn't been going up until just recently and not by much.

There is no way to put a check on things when and if the market starts to tumble because they've been leveraged to boost an already thriving market.

You mean Putin don't you?

Timing on the downswing is almost always going to leave you with money on the table. I know people who moved their stocks out during the high volatility periods we had in '15 and parts of '16. You're leaving out plenty of dividend potential, PLUS the fact that moving that money out in some cases exposes you to taxes.

What I would do instead is keep your stock certificates, but you should also be setting aside some cash every month. Then when the proper bear market hits? You take that cash and you buy. Don't worry about your existing stocks being de-valued. They will claw back up. When a stock market goes bear, all it means is your money is now worth more on the market. The 1929 crash saw 90% of the stock market lose its value. Another way to think of that loss is $100k after the crash bought you close to $1M in stocks just before it.

stock market is falling again. tech stocks tumbling.

the gains for 2018 has been wiped out.

Good time to buy!

Well the people chose to put the Democrats back in power and the only comfort I can find is the fact their 401k's are plummeting because of it.

Wise choice goofballs.

Why do I get the feeling this makes guys like you, PDF, OCD happy?

WRONG. Try again. This is the historical S&P 500 rates of returns when a Dem vs Rep is in office.


Need more? Here is another


Now, it is very reasonable to assume that the market has many conditions that affect it, way beyond just who is in office. But you CAN NOT argue the FACT that the market traditionally does better when a DEM is in office.

Why would I be happy about lost money?

Wrong!

Your chart doesn't reflect the goofs placing Mad Maxine Waters in charge of the House Financial Services Committee!

Down the drain we go.
Mad Max in charge of the money!
Schiff filing subpoenas on the entire executive branch!
Socialist looking to bankrupt America!

Tear it down they cry!
Make America a Crap hole Country!

40 preaching voodoo economics. Trump created a bubble with lies. We'll see if he can right the ship with more lies.

You're trying to win a debate with factual data ??

The stooges don't do well with facts. GL

You brought facts to the table and what did you get in return?

A Maxine Waters rant. I guess the real question would be, did you actually expect anything more?

Did you steal that from Trump?

Some real reasons-
It is at the end of about 10 years in a good market and some people are getting spooked and taking some profit.

Interest rates going up making it more costly to borrow.

tax cuts that are providing no real benefit other than some more money for the fortune 500 to reinvest into their own stock and an even higher deficit. Geez, they didn't reinvest all this money back into their business or wages. Who would have thought.

Oil prices are falling

And the trade war and the tariffs could be a really big deal.

From CNBC yesterday.

Analysts expect a deceleration in 2019 driven by tariffs, the fading impact of the tax cuts and higher borrowing costs caused by the Federal Reserve.

"Put simply, stocks have already started to price in the risk of an economic slowdown," Goldman Sachs chief US equity strategist David Kostin wrote to clients on Tuesday.

So what's your hilariously lame excuse for the markets tumbling WAY before the election results? The Dow was down about 10% in Oct.

And just as a gentle reminder, the elections were in November. That's the month after October. I know how you Trumpers love to get your facts and timelines confused!

I wish we could move maxine in with 40 and Vambo like a dem checks and balance at their house.

Yeah, but would she really be willing to live in a basement?

No basements in the trailer park bro.

Yet another place she would never live.

How about the loony bin?

Trump’s tax-cut party is officially over

https://finance.yahoo.com/news/trumps-tax-cut-party-officially-204513240.html

The sharp cut in tax rates President Trump signed last year was supposed to trigger an investment boom. In June, six months after the tax cuts went into effect, Trump called the tax-cut law an “economic miracle” and said, “Our country is doing so well. I don’t think it’s ever done like this, in terms of the economy.”

The miracle was more like a mirage. One key element of the Republican tax legislation was a sharp cut in the corporate tax rate, from 35% to 21%, which went into effect at the start of the year. As expected, the tax cuts roughly doubled the growth rate in corporate profits. Investors expected a stock-market rally. Yet equities have wobbled all year and the S&P 500 is now down about 6% in 2018.

The market, apparently, hasn’t been fooled by the bubbly math accompanying the corporate tax cuts. Earnings growth for the S&P 500 rose from 12% last year to an estimated 23% this year, according to Goldman Sachs. But EPS growth is likely to drop back to 6% next year and just 4% in 2020. Those numbers are still good, and the lower growth rates of the next two years will come atop higher baseline profits. But the sharp slowdown in earnings growth that investors now expect explains a good part of the stock-market selloff of the last two months.

Trump also claimed that corporations overflowing with profits would spend bigly on new facilities and more workers. But that isn’t happening, either. A variety of indicators, such as business fixed investment and capital goods orders, show that businesses are spending at roughly the same pace, or perhaps even a bit less, than they were before the tax cuts went into effect. “There has been a clear leveling off in both capital goods orders and shipments, which suggests that the near stagnation in business equipment investment in the third quarter may be the beginning of a more sustained weakness,” research firm Capital Economics wrote recently to clients. Stagnation was not something Trump or his fellow Republicans promised.

Job growth is strong, one reason the underlying economy remains relatively healthy. But the pace of job growth, averaging 213,00 new jobs per month, is just slightly above the pace in 2016 and 2017, and actually lower than the pace of job growth in 2014 and 2015. The White House says the corporate tax cuts will eventually raise pay by around $4,000 per year, which would be a 6.5% raise for a family earning the median household income of around $63,000. But pay this year is only rising by 3.1%, which is better than last year but still barely ahead of inflation. The tax windfall hasn’t trickled down yet.


The U.S. Treasury Building in Washington. (AP Photo/J. David Ake, File)
More
As for the overall economy, GDP growth was strong in the second quarter of this year, at 4.2%—but that may have been the peak. The third-quarter growth rate dropped to 3.5%, and fourth quarter growth is running at just 2.3%, according to forecasting firm Macroeconomic Advisers. Most economists expect a slowdown during the next two years, perhaps to 2% growth. Stocks have sold off during the last several weeks in large measure because investors believe slower growth will put a lid on corporate profits and possibly lead to a recession.

Republicans who were the sole backers of last year’s tax cuts thought voters would thank them with a Republican sweep in the 2018 midterms, which was obviously a miscalculation. Many Americans say they haven’t noticed any tax cut for themselves, even as corporate coffers swell. Meanwhile, the government’s annual deficit, which normally goes down when the economy is strong because more economic activity generates more tax revenue, is going the opposite direction now. Annual deficits will soon top $1 trillion, with some analysts worried all that federal borrowing could force interest rates higher—another worrying contributing to the selloff in stocks.

So nearly a year after the historic Republican tax cuts, the stock market is lower, a growth slowdown seems to be underway and investors are worried about soaring levels of federal debt. This party barely got started before it was over.

Soros dumps Facebook, Netflix stocks just before they dipped: report


https://www.foxnews.com/tech/george-soro...-plunged-report

Billionaire George Soros’ investment management firm has saved millions after completely selling off its shares of Facebook and slashing its stakes in Netflix and Goldman Sachs just before the stocks nosedived, a report said Wednesday.

Soros Management Fund saved $17.7 million in the fourth quarter by dumping the three stocks, Barron’s reported.


oldman tumbled 15 percent in the fourth-quarter, while streaming-content giant Netflix plunged 29 percent since the end of September, according to Barron’s. Facebook has fallen 20 percent in the fourth quarter, hitting an intraday low of $126.85 on Tuesday.

DEPARTING FACEBOOK EXEC CLAIMS RESPONSIBILITY FOR TIES TO FIRM THAT INVESTIGATED GEORGE SOROS

The firm’s stake in Goldman shrunk from 64,814 shares at the end of June, to 28,206 at the end of September, according to Barron’s. Goldman Sachs' stock began its tumble earlier this month when the Justice Department revealed charges against two former employees for issuing bonds from 1Malaysia Development Bhd.

Cutting 89 percent—or 106,400 shares—of its Netflix position in the third quarter, the firm held only 13,800 shares at the end of the September, according to the outlet. Its stock began its slide in October when investors expressed skepticism over its future profitability.

Soros Fund Management dumped all of its Facebook stock before the end of the third quarter and prior to the publication of a New York Time’s report that the tech company hired a GOP-opposition research firm to investigate links between Facebook critics and Soros, an outspoken opponent of the social media giant, according to Barron’s.

Meanwhile, the investment firm bought 91,200 shares of Chinese web giant Alibaba and 490,100 shares of chip maker Micron in the third quarter, Barron’s reported.

Both stocks have slid so far in the fourth quarter and could amount to a combined loss of $6.2 million for the firm, according to Barron’s.

Whatever calculations or studies Yahoo (don't trust them) is using to say "Americans haven't noticed much of a difference" is biased and heavily flawed. I've made thousands of more dollars due to tax cuts in businesses and for myself.There are real people out in the world that are making money because of it, they just like to pretend they don't exist for some reason. In addition, if these people didn't invest properly, that's their fault.

Some even say that the Democrats want to repeal any of the tax cuts. If anything happens to the stock market because of this I hold them directly responsible.

Had you been able to get away with sending her there, she'd already be there.

Yet you're in total denial to what's happening to the stock market now under Trump's policies.